German automaker Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent through a discounted share placement, Reuters reported Wednesday, citing sources with knowledge of the talks.

At current market prices, the given stake would be worth $4.5 billion. However, Daimler told Geely it was welcome to buy shares in the open market, the report said.

Geely, which also owns Swedish car maker Volvo, is still hoping to secure a deal in some form over the coming weeks, according to the sources.

At Geely's request, both companies held talks in Bejing, in recent weeks.

Geely reportedly is the leading domestic brand in China with a 5 percent market share.

With the requested stake, the Chinese firm would become Daimler's third-largest shareholder behind the Kuwait Investment Authority and BlackRock, who hold 6.8 percent and 6 percent, respectively.

Geely is said to be interested to access Daimler's electric car battery technology and wanted to establish an electric car joint venture in Wuhan, the capital of Hubei province.

Daimler, however, has a long-established joint venture with Chinese carmaker BAIC Motor Corp. The company recently announced plans to invest at least 5 billion yuan or $757 million in electric battery and vehicle production with BAIC in China. The company also has another tie-up with BYD, a Chinese automaker backed by Warren Buffett.

Germany's producer price inflation remained at its highest level in 19 months in November, data from the Federal Statistical Office showed on Wednesday.
Producer prices rose 3.3 percent year-on-year in November, same as in October. Economists had expected a 3.1 percent increase.
The pace of increase...

After failing to sustain an early move to the upside, stocks continued to experience substantial volatility over the course of the trading day on Tuesday. The major averages fluctuated wildly as the day progressed before closing in positive territory.